TaxTMI 
TaxTMI 
2018 (3) TMI 1352
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.....2008 for the Assessment Year 2006-07. 2. The first issue to be decided in this appeal is as to whether the ld CITA was justified in upholding the disallowance of Rs. 91,233/- u/s 14A of the Act in the facts and circumstances of the case. 2.1. The brief facts of this issue is that the assessee is engaged in the business of financing and investment and had filed its return for the Asst Year 2006-07 on 26.10.2006 disclosing total income of Rs. 9,31,920/-. The ld AO observed that the assessee was requested to furnish different details by issue of letter dated 12.9.2008 and also as per the order sheet entires, which were duly complied with by the assessee. The ld AO observed that the assessee had earned dividend income of Rs. 9,44,243/- and L....
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....ng, the ld CITA observed that the disallowance of interest under Rule 8D(2)(ii) of the Rules has been rightly made by the ld AO and upheld the disallowance of Rs. 91,233/-. 2.2. Aggrieved, the assessee is in appeal before us on the following ground:- 1. That the Ld. CIT(A)-5, Kolkata was not justified in confirming the disallowance of Rs. 91,233/- u/s 14A of the IT Act, 1961. 2.3. We have heard the rival submissions. The relevant assessment year under appeal is 2006-07 at which point of time , the provisions of Rule 8D was not in force and the same was made applicable only from Asst Year 2008-09 as decided in the decision of Godrej & Boyce Manufacturing. However, it is not in dispute that the assessee had derived taxable income as well....
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.... 16.9.2005 Indus Ind Bank Ltd on 25000 shares @ 1.80 per share 45,000 1.10.2005 NTPC Ltd on 13826 shares @ 1.20 per share 16,591 18.10.2005 SAIL on 450000 shares @ 1.80 per share 8,10,000 3.3.2006 NTPC Ltd on 13826 shares @ 2 per share 27,652 9,44,243 The assessee furnished the details of short term capital gains for the period 1.4.2005 to 31.3.2006 in respect of each scrip containing the purchase details with date of purchase, quantity, rate and value ; sales details with date of sale, quantity , rate and value ; short term capital gains / losses derived in each scrip. From the said workings, the ld AO observed that the assessee had reported short term capital loss in respect of sale of shares o....
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....45.93 Lanco Industries Ltd - Rs. 2,37,964.72 Lanco Industries Ltd - Rs. 1,63,974.03 Lanco Industries Ltd - Rs. 1,11,216.23 Lanco Industries Ltd - Rs. 1,74,073.76 Out of the short term capital loss claimed in respect of aforesaid scrips, the assessee had earned dividend income of Rs. 8,10,000/- only from SAIL. Hence the provisions of section 94(7) of the Act, if at all applicable, would be confined only to the scrip of SAIL and not for other scrips. Now the record date of declaration of dividend by SAIL was 11.8.2005. For the sake of convenience, the provisions of section 94(7) of the Act are reproduced below:- Sec. 94 - Avoidance of tax by certain transactions in securities. [(7) Where- (a) any person buys or acqui....